Empty crop stockpiles quickly with Section 44

Massive slowly deteriorating crop stockpiles dating back to 2008 need to be quickly sold off to avoid even greater losses.

AGRICULTURE & THE LAW

Empty massive crop stockpiles quickly with S44: Immunity for officials doing their job

15/09/2016
Post Reporters

The regime has given officials immunity from future lawsuits over their handling of the massive government stockpiles of crops such as tapioca and maize.

These stockpiled crops date back as far back as the 2008 growing season.

The crops were accumulated and stored under so-called government "pledging schemes" such as the famous rice-pledging scheme.

The original idea behind crop pledging schemes was to provide farmers with a guaranteed fair price for their crops, under conditions of price volatility.

In reality, they evolved into a massive subsidy system with payments for rice far above market price.

This would have a been a good gamble, if rice prices rose but they fell. Anyway, gambling on crop prices is, perhaps, not a sound form of government policy.

OFFICIALS PROTECTED FROM BLAME FOR INEVITABLE LOSSES

Authorities are stepping up efforts to discharge tapioca and maize pledged to the government.

Losses will be inevitable.

The long-stored crops are now in a deteriorated state and it must be sold rather than kept in storage at huge expense.

Monthly storage costs for tapioca are 50 million baht, maize seven million baht and rice 500 million baht.

There is a huge financial burden in making use of storage, and the stockpiles should be discharged quickly.

MASSIVE AMOUNTS OF CROPS IN GOVERNMENT STORAGE

A total of 340,000 tonnes of tapioca is being kept in the government's stock.

The stockpile, worth 77 billion baht, was pledged from the 2008/09 harvest season.

A total of 94,000 tonnes of maize was pledged from the 2008-09 harvest season, almost all in a deteriorated condition.

More than 8.4 million tonnes of rice is being kept in government storage.

SECTION 44 ORDER TO PROTECT GOVERNMENT OFFICIALS DOING THEIR JOB

Government officials are understandably cautious when rules are not clear and they might be held liable for actions they take.

Since losses on the long-stockpiled crops are a sure thing, an order is needed to send a clear message that they will not be punished for doing what needs to be done, namely promptly selling long-stockpiled crops. 

Under the order invoked by Prime Minister Prayut Chan-o-cha, officials, panels, and agencies assigned from May 22, 2014 to deal with stockpiles of tapioca from the 2008/09 to 2012/13 harvest seasons, and maize during the 2008/09 season will still proceed with their duties to prevent further losses.

The order encourages officials to release the stockpiles more quickly.

The government fears further deterioration of crops and financial burdens from warehouse, insurance and maintenance expenses.

It also wants to stop supplies from being released in the market at an unsuitable time when prices are low.

The order also covers officials who are working on identifying those responsible for the losses and demanding compensation from them.

According to the order, these officials will be immune from criminal and civil lawsuits as well as disciplinary actions when performing their duties.

CRIMINAL CASES

A total of 180 criminal cases were pursued in tapioca price intervention programmes, which caused losses of 4.36 billion baht.

Former prime minister Yingluck Shinawatra will be fined 286.6 billion baht for losses incurred by her government's rice-pledging scheme.

Six former Commerce Ministry officials, including former commerce minister Boonsong Teriyapirom, who are believed to be linked to the allegedly fraudulent government-to-government rice sales, will be asked to pay back a total of 20 billion baht to the state.

http://www.bangkokpost.com/news/politics/1086012/pm-wields-s44-for-crop-schemes

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